Home loan rate cuts ease borrowing, but affordability challenge in Mumbai, NCR: Report
A report indicates that while lower home loan rates have improved sentiment in India, housing affordability remains a significant issue in Mumbai and the NCR. Developers are increasing supply in response to demand, but rising property prices continue to strain buyers.
Why it matters
It highlights the disconnect between monetary policy and real-world housing affordability in major urban centers.
Affordability remains a challenge in Mumbai and the National Capital Region (NCR) even as lower home loan rates improve buyer sentiment. The mixed outcome has been observed in a recent real estate report.According to the report by NBR group, the Reserve Bank of India's cumulative 125 basis points of repo rate cuts during the first half of 2026 have made home loans meaningfully cheaper.However, the benefits reportedly aren’t uniform across the country, as residential property prices across major Indian cities such as Mumbai and the NCR have increased up to 19 per cent year-on-year.Despite affordability concerns, Delhi-NCR has seen a sharp rise in new housing supply, with 39 per cent jump in new residential launches.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in